SAN FRANCISCO, April 2, 2014 (GLOBE NEWSWIRE) -- GeoPetro Resources Company (OTCQB:GEOR) ("GeoPetro" or the "Company") is pleased to announce that reworking and testing operations commenced in March 2014 in the Madisonville Field, Madison County, Texas.
The Company initiated reworking and testing operations on the Ruby Magness #1 and the Angela Farris Fannin #1 wells in anticipation of restoring production in the Madisonville Field. These two wells are expected to recommence production by mid-year 2014.
The Company owns a 100% working interest in certain leases in the Rodessa Formation interval within the Madisonville Field. The Company also owns a 100% interest in a natural gas treatment plant and related gas gathering pipelines and related facilities (collectively, the Plant). The Plant has a design capacity to treat 18 million cubic feet of natural gas per day.
The Company is currently conducting additional operations and work programs to restore its production from the Ruby Magness #1 and Angela Farris Fannin #1 wells. The Company also plans to further increase production in the Madisonville Field by performing workover operations in the Mitchell #1 and Wilson #1 wells in 2014.
Addressing the positive developments at the Madisonville Project, GeoPetro's President and CEO, Stuart J. Doshi commented, "We are particularly pleased with the commencement of operations at Madisonville Field which represents a significant milestone for the Company. The recent strengthening of natural gas prices from the 10-year lows experienced over the previous two years provides us with an opportunity to position the Company to re-establish production and generate revenues and positive cash flow for the Company by not only bringing the Magness #1 and Fannin #1 wells online, but also further enhancing production by performing workovers at the Mitchell #1 and the Wilson #1 wells. Additionally, the Company continues to be focused on securing an industry partner to undertake the drilling of a deep well to test six (6) highly prospective zones in the Madisonville Field. Our 3-D seismic shows a very attractive structural closure with a high potential for a major discovery."
The Madisonville Field has been a prolific producer of oil and natural gas. The Rodessa and shallower zones have to date produced in excess of 30 million barrels of oil and 100 billion cubic feet of natural gas. The six (6) zones below the Rodessa Formation have potential recoverable reserves of approximately one (1) trillion cubic feet of natural gas.
About GeoPetro
GeoPetro is an independent oil and natural gas company headquartered in San Francisco, California. GeoPetro currently has projects in the United States and Australia. GeoPetro has developed an oil and gas property in its Madisonville Field Project in Texas. Elsewhere, GeoPetro has a geographically-diversified portfolio of exploratory and appraisal prospects.
Cautionary Note Regarding Forward-Looking Statements
Certain items in this press release and other information GeoPetro provides from time to time may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including, but not necessarily limited to, statements relating to future events and financial performance. You can identify these forward-looking statements by the use of forward-looking words such as "outlook," "believes," "expects," "potential," "continues," "may," "will," "should," "could," "seeks," "approximately," "predicts," "intends," "plans," "estimates," "anticipates," "target," "projects," "contemplates" or the negative version of those words or other comparable words. Any forward-looking statements contained in this press release are based upon GeoPetro's historical performance and on GeoPetro's current plans, estimates, and expectations in light of information currently available to GeoPetro. Such forward-looking statements are subject to various risks and uncertainties and assumptions relating to GeoPetro's operations, financial results, financial condition, business, prospects, growth strategy, and liquidity. For a discussion of such risks and uncertainties, see "Risk Factors" included in GeoPetro's Annual Report on Form 10-K. Furthermore, GeoPetro is under no obligation to update or alter any of the forward-looking statements contained in this press release as a result of new information, future events or otherwise, unless required by law.
No stock exchange or regulatory authority has approved or disapproved of the information contained herein.